IROC vs SCHD
Invesco Rochester High Yield Municipal ETF vs Schwab US Dividend Equity ETF
Quick Verdict
SCHD has a lower expense ratio. SCHD delivered stronger 1-year returns. IROC offers more diversification with 137 holdings.
Side-by-Side Comparison
| Metric | IROC | SCHD | Winner |
|---|---|---|---|
| Expense Ratio | 0.39% | 0.06% | |
| AUM | $154M | $108.7B | |
| Dividend Yield | 5.20% | 3.13% | |
| Holdings | 137 | 104 | |
| YTD Return | -0.23% | +26.54% | |
| 1Y Return | +3.72% | +30.90% | |
| 3Y Return (annualized) | +3.84% | +16.29% | |
| 5Y Return (annualized) | - | +9.65% | |
| Volatility (annualized) | 4.6% | 13.6% | |
| Max Drawdown | -4.8% | -33.4% | |
| Fund Family | Invesco (US) | Charles Schwab Asset Management | |
| Category | Fixed Income | Equity | |
| Inception | Dec 9, 2022 | Oct 20, 2011 |
IROC vs SCHD Performance
Invesco Rochester High Yield Municipal ETF (IROC) is a ETF from Invesco (US) and Schwab US Dividend Equity ETF (SCHD) is a ETF from Charles Schwab Asset Management. Over the past year IROC returned +3.72% while SCHD returned +30.90%. Year to date, IROC is down 0.23% versus a gain of 26.54% for SCHD.
Over three years, IROC compounded at +3.84% per year against +16.29% for SCHD. Across the full 4-year window we track, SCHD has the edge at +11.51% annualized vs +3.70%. Past performance does not guarantee future results.
Risk: Volatility and Drawdowns
SCHD has been the more volatile fund, with annualized monthly volatility of 13.6% compared with 4.6% for IROC. Lower volatility generally means a smoother ride, though it often comes with lower long-run returns.
The deepest peak-to-trough decline in our data was -4.8% for IROC and -33.4% for SCHD. Drawdown depth is worth weighing if you expect to sell during market stress rather than ride it out.
The two funds' monthly returns correlate at 0.52. They move independently enough that combining them can meaningfully diversify a portfolio.
Fees and Cost Over Time
IROC charges 0.39% per year while SCHD charges 0.06%. On a $10,000 position that is $39 vs $6 annually, a gap of $33 per year that compounds over a long holding period. On income, IROC currently yields 5.20% against 3.13% for SCHD.
Holdings Overlap
IROC and SCHD share 0 holdings out of 147 unique holdings combined, representing a 0.0% weight overlap.
Moderate overlap means holding both could provide meaningful diversification benefits.
Frequently Asked Questions
Which is cheaper, IROC or SCHD?
IROC has an expense ratio of 0.39% while SCHD charges 0.06%. SCHD is the cheaper option. On a $10,000 investment, that is $33 per year of difference.
Which performed better, IROC or SCHD?
Over the past year IROC returned +3.72% vs +30.90% for SCHD, so SCHD leads on 1-year performance. Over the longest common window we track (4 years), IROC annualized +3.70% vs +11.51% for SCHD. Past performance does not guarantee future results.
Which is riskier, IROC or SCHD?
SCHD has been the more volatile fund at 13.6% annualized versus 4.6% for IROC. Worst drawdown: IROC -4.8% vs SCHD -33.4%.
Should I hold both IROC and SCHD?
IROC and SCHD have a monthly-return correlation of 0.52, so combining them can provide real diversification depending on your allocation goals.
What is the holdings overlap between IROC and SCHD?
IROC and SCHD share 0 common holdings with a 0.0% weight overlap. Combined, they hold 147 unique securities.
Which pays a higher dividend, IROC or SCHD?
IROC yields 5.20% while SCHD yields 3.13%, so IROC currently pays the higher dividend yield.
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